Most of us are always confused with the terms MBA and PGDM. Some of us even consider MBA and PGDM as synonyms but there are differences between MBA and PGDM. To understand these terms we should take into account both terms.
Let’s understand the basics of the MBA and PGDM
What is an MBA degree?
An MBA is a post-graduation degree in management awarded by a college or institute in affiliation with some university. The duration of the MBA course is 2 years and there are a number of specializations this course is offered for.
This course helps in developing future business leaders that can bring change to the current business scenario through innovation and new strategies.
What is PGDM?
PGDM is a diploma course basically with a duration of 1 to 2 years. These are offered by the institutes and colleges which are approved by AICTE. For granting the diploma in PGDM it is not necessary for the college to be affiliated with some university.
Even though the PGDM degree is considered equivalent to MBA if the duration of the course is 2 years. Such courses have higher fees as compared to MBA courses.
Difference between MBA and PGDM
| Parameter | MBA | PGDM |
|---|---|---|
| Type of course | Degree | Diploma |
| Duration | 2 years | 1-2years |
| Eligibiltiy | Graduation with 45-50% marks. | Graduation with 45-50% marks. |
| Fees | ₹ 2-20 Lakh | ₹ 4-24 Lakh |
| Admission | The entrance test is followed by GD and personal interview. | Entrance test or direct admission |
| Subjects | Financial Management, Human resources, Marketing Management, Accounting, Operations Management, CRM, etc. | Financial Accounting, Business Economics, Basics of Mathematics and Statistics, Marketing Management, Business Communication, Human Resource Management, etc. |
| Avg. Salary | ₹ 5-20 LPA | ₹ 2-25 LPA |
| Accreditations | Colleges are affiliated with some universities, UGC, and AICTE approved. | AICTE-approved colleges and institutes provide diploma |
| Job opportunities | HR Manager, Business Analyst, Marketing Manager, Finance Advisor, Investment Banker, and so on. | Project Manager, Data Scientist, Auditor, Tax Specialist, Consultant, etc. |
Differences between MBA and PGDM
Course material: The MBA Program courses do not change frequently as it includes all the basic details of focusing on leadership development and managerial tactics to develop the strategies. Whereas the PGDM course changes as per the requirement of the industry.
Admission process: MBA is a degree program for which you need to qualify for the entrance exam followed by a group discussion and personal Interview whereas the PGDM diploma requires no entrance test in some colleges or a Written aptitude test followed by a Group discussion and personal interview. The Short term PGDM course can also help in getting a brief overview of the management.
Cost of pursuing the course: The fee of the MBA program is less as compared PGDM course as the MBA colleges are government aided so the universities get some fee amount from the government and there is less burden on the students.
Aim: Though the MBA and PGDM courses are but there is some difference in the pedagogy. The PGDM course study includes learning outside the syllabus from the real world. It includes studies using videos, live cases, simulations, and other techniques. whereas the MBA courses focus mainly on books.
Chances of Fraud: there are sometimes chances that the institutes provide fake PGDM diploma which is not valid for any job whereas the MBA degree is provided by government-recognized institutes so no chance of cheating prevails here.
Which is better: MBA or PGDM?
Now the question arises which is a better course PGDM or MBA? So, the answer is the PGDM, as it includes the latest curriculum and practical learning that lead to more knowledge as per the current industry trend. Now, you must have understood what are the major differences between MBA and PGDM, so, it all depends on your preference for where you want to go and what course you would like to pursue.
As per the reported survey, the PGDM is more worthwhile in 2022 and in the coming years as compared to MBA.
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